Budget 2025: Fintechs pitch for dedicated Rs 1,000 crore fund
India Budget: Grappling with increased cost of capital and scarcity of funding, fintech companies have approached the finance ministry seeking a dedicated fintech fund to the tune of ₹1,000 crore, two people present in the meeting told ET.
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In a recent meeting with the finance secretary Tuhin Kanta Pandey — which saw participation from several industry stakeholders and lobby groups — the Digital Lenders Association of India (DLAI) sought a special fund dedicated toward providing subsidised capital only to small- and mid-sized fintechs.
«We have represented to the finance secretary about the need to provide budgetary allocation of up to ₹1,000 crore to provide low-cost capital to small- and mid-sized fintechs who have been struggling to survive as funds have become scarce,» said an official, who was part of the meeting.
The request from DLAI is to set up an "India Fintech Fund" on the lines of the Financial Inclusion Technology Fund operated by the National Bank for Agriculture and Rural Development (Nabard). The fund, with an outlay of ₹500 crore, is used to meet the cost of technology adoption for firms promoting financial inclusion.
Fintech industry stakeholders have also stressed the need to send out positive policy messaging regarding the sector.
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